Used by Delta Capita to publish ‘Points of View’ posts to the Publications section / the homepage of the main website.

Women in Technology: DC Consultant Interview

Women In Tech, a website dedicated to women already in or looking to join the tech sector, have interviewed Khrystyna Andronova, a Front Office Technology Consultant at Delta Capita, on her personal experience and thoughts on women in technology.

The questions include whether there are barriers to women getting into technology, and how we can encourage more women to start a career in the tech sector.

Click here to read the full article.

MiFID II’s potential banana skin

Mark Aldous, head of managed services for Delta Capita, discusses product governance and the need for more cooperation between manufacturers and distributors before the 3rd January 2018.

Buried within the vast array of complex MiFID II legislation is a simple but potentially troublesome requirement to formalise the way in which financial products are developed, designed and their target market is identified based on customer needs. Simple, because most firms already have product development controls in place and will consider suitability and appropriateness as one of their core conduct policies. Potentially troublesome because compared to the heavy lifting in other areas of MiFID II, some have taken the view that this part of the legislation would be relatively easy to implement. And with less than three months to go, the complexities of operating under the prescriptive requirements in the delegated acts have started to come to the surface.

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Why the Insurance Industry Has More on its Plate Than Just Brexit!

From change management to cyber risk, insurers need to look beyond Brexit to the wider challenges facing the industry, as the traditional insurance business model as we know it is under threat. But ultimately, Brexit might prove to be just the push needed to get the sector innovating.

Onno Bloemers, Delta Capita Insurance Lead, writes that “Brexit means breakfast” may now be a phrase forever synonymous with political gaffes, but for the insurance sector, it represents far more than a ketchup splash of poetic irony. While the uncertainty surrounding the type of Brexit deal agreed undeniably represents the bacon and sausage, UK insurers will be at a disadvantage from their international counterparts should they push the mushroom and beans to one side.

Click here to read the full article.

Insurance 2017 – Managing Risks

The classical insurance business model is under fire. Existing insurers struggle.

In this article, Onno Bloemers, Delta Capita Insurance Lead, explains that often quoted reasons for this include regulatory pressures and legacy landscapes. But there is a more fundamental problem. Insurers lack the skills to effectively design & implement a new, future proof value chain. They simply never had to.

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Are asset managers still walking the variation margining tightrope?

Anyone wondering how the buy-side is getting on with variation margining? Remember all the speculation about how any firm missing the March 1st EMIR deadline could have certain derivatives trades shut down?

Jonathan Adams, senior practitioner at Delta Capita, asks whether asset managers are still walking a tightrope when it comes to variation margining.

Click here to read the full article.

PD3 – Are You Thinking About It?

While many will still recall the pain of “PD2” implementation in 2012, the European Union (EU) has announced a new Prospectus Regulation that will repeal and replace the existing Directive, becoming fully effective in 2019. Despite taking the form of a Regulation rather than a Directive, this new Regulation is commonly being referred to as “PD3.”

The provisional text, already approved by the European Parliament and adopted by the Council, is expected to be published in the Official Journal in the coming weeks. With a consultation paper on the new Regulation also imminent, the industry has an awful lot to mull over.

Sarah Natt from Delta Capita discusses what the PD3 changes mean, and why there has never been a more pressing time to act in the Consultation process.

Click here to read the full article.

Does the CBOE takeover of BATS go against the spirit of MiFID?

From expanding into more asset classes, to offering new ETFs, currencies and cash stocks trading, there is no question the US$3.2bn acquisition of BATs provides CBOE with a truly global multi asset one-stop shop.

CBOE will benefit from new revenue streams from the fastest growing markets. Recent estimates also suggest that by using BATS technology, CBOE will make annual cost savings in the region of US$65m. Everything is certainly rosy in the CBOE garden.

But given the fact that many initial post-crisis regulations aimed to increase exchange competition as opposed to reducing it, what knock-on effect will a deal of this magnitude have on European market structure?

Sylvia Smit, Head of Equity Markets Delivery at Delta Capita, explains that to answer this question, it is worth looking back before fully assessing what could lie ahead.

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Insurance 2017: What Maslow Means for Keeping Customers

Many firms apply Maslow’s hierarchy of needs to seduce customers – but stop once a sale is made. Why not continue?

Explaining customer needs through the theory of Maslow is common practice. Marketers often apply the principles to attract new customers. However, if you fail to continue to do this once you have attracted a customer, your ability to retain them will be compromised.

In this article, Onno Bloemers, Delta Capita Insurance Lead, suggests an approach that takes into account the position of the client within the needs pyramid. After all, if you understand the initial need that has led to a buying decision, you can continue to apply this to retain your customers.

Click here to read the full article.

Priips has resulted in co-operation between ultra-competitive banks

They say good things come to those who wait, and market participants have certainly had to be patient as first the Markets in Financial Instruments Directive (Mifid II) and then, at the eleventh hour, the Packaged Retail and Insurance-based Investment Products (Priips) regulation was put back for another year. Joe Channer, CEO of Delta Capita, describes how the waiting could soon be over, with a revised Priips RTS now imminent, coupled with a Mifid II deadline of January 2018 locked down.

The existing delays have already come at a cost to the industry; take the uncertainty surrounding the timing of Priips as a classic case in point. The structured products industry had accepted the Priips regulation as a positive step, invested significant effort to be ready for delivery and had their minds set on January 1, 2017 as the deadline.

Click here to read the full article.

Ch-ch-ch changes in Asset Management “Asia Asset Management” Feature by Atul Arora

A true innovator who revolutionised an industry – the late, great David Bowie has much more in common with the wealth management sector than one might think. And it’s not just the creation of Bowie Bonds, which allowed people to invest in the singer’s future earnings, that connects the Starman with the world of finance and structured products.

Today, the Bowies of the wealth management industry are the disruptive tech firms – who are increasingly chipping away at the bigger player’s market dominance. It’s not hard to see why, as diversification is currently the name of the game – and no investor wants to put all their eggs in one basket. This in turn gives rise to more opportunities for the newer players in the market, looking at providing differentiated services at a cheaper cost.

The modern-day investors are much more savvy and better informed, and they prefer to have at least three or four specialist wealth managers looking after part of their money. For example, they may want to let a manager strong in emerging markets to manage their emerging market exposure, and at the same time use a completely different manager for their expertise in Japanese equities or US government debt. In today’s low-interest rate environment, investors understand the positive effect specialists can have on returns. One of the platform provider calls this (jokingly) Newton’s 4th law, which states that the “investors will invariably diversify”. This diversity of choice has in turn given rise to plethora of disruptive technology innovators entering the market – ranging from stand-alone robo advisers to solutions that aggregate client reporting.

Reporting aggregation solutions have been driven primarily by the desire of the investors to see their overall exposure in one report. Given the fact that these reports from various wealth managers run into tens of pages, and have been produced using archaic systems (and poor quality data), there are invariably errors that investors have got used to over time. With the latest technology stack and no “IT Debt” (legacy IT Infrastructure), investors have been able to benefit from higher quality aggregated reports.

Some of these aggregators have taken the offering further and have started to analyse the deluge of data they have access to in the form of these reports. They have diversified into upstream “robo wealth advisory” and have been able to create much more customised portfolios for the investors. Combining the cost advantage robo-advisory offers along with the usage of big-data and analytics to better match the risk/return/liquidity profile of the investors, these ‘new kids on the block’ have been able to consistently deliver an additional 30-40 basis points of returns to their investors. Their value proposition is becoming increasingly difficult to ignore with every passing day.

The demand for automated (low cost) advice, as well as aggregated and accurate reporting will continue to grow as the 2017 progresses. It’s up to the established players to decide how they want to respond to these challengers. Do they want to build competitive technology in-house, or buy services/technology from these challengers (white labelling or otherwise), or acquire one of these challengers outright? Is the organisation ready for any one of the responses better than the others? There are questions to be answered and decisions to be made, urgently.

Firms that continue to innovate and reinvent themselves like the recently departed Bowie, will be best placed to maintain their pole position as well as improve their market share. Turning and facing the technology ch-ch-changes may well be the only option traditional wealth management powerhouses have got to keep pace with the nimbleness of the competition.

Click here to view this article on the ‘Asia Asset Management – The Journal of Investments & Pensions’ website.